Connecting Farmers with Investors who Buy Land
Oftentimes, a farmer who has been farming a tract of land for many years will be given the “first opportunity” to either buy the land himself or find an investor who will buy the land and rent it back to him. Young and beginning farmers can also benefit by working with investors if they don’t have the capital themselves to buy land. Investors benefit when given the opportunity to buy farmland privately and can negotiate all terms & condition with maximum flexibility.
Why Invest in Farm Real Estate?
Increasingly, investors are realizing that agricultural real estate is a highly compelling alternative (especially when it comes to portfolio diversification) to the stock market when it comes to choosing a high level of capital security, but low level of risk. Three defining economic trends investors must consider are population growth, resource scarcity, and climate change. These are serious issues individually and they’re all inextricably linked. Over time, their paths will increasingly converge and their effects on the global commerce stage will become even more pronounced. Investors with exposure to farmland and the commodities derived from it are in the best position to benefit from these trends.
Other reasons for choosing to invest in farmland include:
- Farmland is an effective inflation hedge and a stable, income-producing asset that performs well in times of market turmoil
- Direct investment farmland delivers lower income volatility and is simple and transparent
- Farmland investments deliver high total returns and super risk-adjusted returns
- These investments provide tax planning opportunities